Everything you need to know about importance of training and development. Training and development is the corner-stone of sound management.

Training and development makes employees more productive and effective. It is actively and intimately related to all the personnel or managerial activities. It is an integral part of the whole management program with all its many activities functionally inter-related.

Training and development is also important for any organization that wants to take advantage of changes, techniques and improvements.

Training and development is important for the following reasons:-


1. Optimum Utilization of Human Resources 2. Creating a Highly Skilled, Motivated and Enthusiastic Workforce 3. Increase Productivity 4. To Improve Quality of Work 5. To Decrease Learning Period 6. Build Team Spirit 7. Healthy Work Environment 8. To Reduce Cost

9. To Improve Health and Safety 10. To Improve Organisational Climate 11. Personal Growth of Employees 12. Improve Employee Morale 13. Better Managerial Skills 14. Corporate Image 15. Skill Enhancement and 16. Reduce Employee Turnover.

Also, learn about the need and significance of training and development of employees at:- 1. Individual Level 2. Group Level and 3. Organisational Level.

Importance of Training and Development of Employees in HRM

Importance of Training and Development – Top 10 Importance: Optimum Utilization of Human Resources, Increase Productivity, Build Team Spirit and a Few Others

1. Optimum Utilization of Human Resources:


Human resources need to be polished and trained to enhance their potential. Training and development of employees helps to make the best use of the employee’s overall worth to the organization.

2. Creating a Highly Skilled, Motivated and Enthusiastic Workforce:

The existing workforce is trained to increase their productivity, and motivated to contribute their best towards the organization. The employees will be more confident about themselves and enthusiastic about their job. They will adapt to technological changes and innovations more readily.

3. Increase Productivity:


Knowledge about usage of sophisticated machinery and new technology is imparted to employees which will enable them to use the equipment more efficiently and thereby increase productivity.

4. Build Team Spirit:

Training often takes place in groups where the trainees are encouraged to interact with each other and discuss organizational issues. This helps to create team spirit among the employees.

5. Healthy Work Environment:

Training and development programmes help to modify the thought and behaviour process of the employees in such a way that is conducive to building a healthy work environment.

6. Personal Growth of Employees:

Development programmes provide opportunities to the employees to enhance their skills and knowledge and help them to achieve better career growth.

7. Promote Learning Culture:

The employees are encouraged to continuously learn new concepts and update their talents. This helps to promote a learning culture within the organization which would greatly help in its future sustenance and growth.


8. Improve Employee Morale:

When employees are trained to become better performers, they feel a sense of accomplishment. They realize that they are effectively contributing towards organizational goals and thus get a morale boost.

9. Better Managerial Skills:

Training and development programmes inspire the employees to think, plan, solve problems and take important decisions. This hones up their managerial skills.


10. Reduce Employee Turnover:

A well trained employee will take more interest in his job and will be a more efficient worker. He will get more job satisfaction. People who love their jobs are more loyal towards the organization.

Importance of Training and Development – To Both Employees and Employers in an Organization

Training and development offers innumerable benefits to both employees and employers. It makes the employee more productive and more useful to an organization.

1. To increase productivity – Instruction can help employees increase the level of performance.


2. To improve quality of work – Trained workers use machines, tools and materials in proper way. They maintain uniformity in work methods and thus make less mistakes.

3. To decrease learning period – A systematic training and development programme helps to reduce the time and cost involved in learning. They need not waste their time and efforts in learning through trial and error.

4. To Reduce Cost – Trained employees make more economical use of materials and machinery, thereby reducing wastage and spoilage. Maintenance cost is also reduced due to fewer machine breakdown and better handling of equipment.

5. To improve Health and safety – Proper training and development can prevent industrial accidents. Trained employees follow right work method and make use of the prescribed safety devices.

6. To improve Organisational climate – Training and development improves organizational climate, as well trained employees tend to be self-reliant and motivated. They need less guidance and control and thus they have less supervisory pressure. Industrial relations and discipline are improved. Organizations having regular training programmes can fulfil their future needs for personnel from internal sources which in turn increases job- satisfaction and morale of employees.

7. To help in personal growth of employees – Training and development helps employees to enhance their individual knowledge and skills. It is beneficial for the employees by ways of increasing.


8. Self-confidence – Training and development helps to improve the self-confidence of an employee. They tend to become self-reliant and motivated.

9. Safety – Training and development helps an employee to use various safety devices. They can avoid mistakes, accidents on the job.

10. Adaptability – Training and development enables an employee to adapt to changes in work procedure and methods. He can be more mobile and pursue career goals activity.

11. Higher Earnings – Training and development makes employees more efficient and effective. They can produce more with minimum effort and thereby earn more.

12. Promotion – Employee can develop himself and earn promotion easily.

13. New skills – Training and development provides new knowledge and skill among employees. This makes him more useful to a firm.

Importance of Training and DevelopmentNeed & Significance at Individual, Group and Organisation Level

1. At Individual Level:

i. It helps in Diagnosis of present problems and future challenges


ii. It Improves individual performance or fixes up performance deficiency

iii. Training Improves skills or knowledge

iv. It helps in anticipating future skill-needs and prepares employees to handle more challenging tasks

v. It also helps in preparing for possible job transfers

vi. Trained employees can cope up with any changes in technology easily


vii. Training makes employees become hyper efficient

viii. Trained employees advance in their career faster.

2. At Group Level:

i. It helps the group to face any change in organization strategy at group levels

ii. Training helps the groups when new products and services are launched

iii. It helps in avoiding scraps and accident rates.

3. At Organization Level:

i. Trained workers are more productive.


ii. Trained workers do not need strict supervision.

iii. Trained employees come out with quality performance.

iv. Training programs are well appreciated by employees as well as trade unions.

Importance of Training and Development

Every business organisation constantly trains, develops and educates its employees to ensure that each employee is able to perform the assigned duties most effectively and efficiently.

When teachers teach you, the concepts related to a topic they are actually educating you by increasing your knowledge and understanding. They ask you to solve different types of questions within time limit is actually a process of training you to be able to write your exams well. The projects and other activities are given with an aim to develop your analytical and application skills.

Have you ever realized that you were constantly being educated, trained and developed right from the day you joined school? So, training, development and education are the on-going processes which are pervasive and prevail everywhere. Only difference with business organisations is that these functions are performed in a formal structure. The Human Resource Department of an organisation designs and delivers the training and development programmes to enhance organisational performance.

Let us understand the concept and role of the three elements, which help employees perform their best:

1. Training is a process, which aims to incorporate or improve the attitudes, skills and abilities amongst employees to perform specific jobs. It aims to improve not only the current performance of an employee but also prepares him/her for other responsibilities.

2. Education is the process of increasing the knowledge and understanding of employees. It develops a logical and rational mind that helps employees to understand basic principles and phenomenon to be able to analyse and synthesise the information.

3. Development is a process of helping employees grow. It involves all such activities, which aim to provide opportunities to improve job performance, bring growth in the personality, help to realise true potential and be better individuals.

Importance of Training and Development:

1. It helps remove performance deficiencies in employees

2. It results in Greater stability, flexibility and capacity for growth in an organization

3. Accidents, scraps and damages to machinery can be avoided

4. Training & development Serves as effective source of recruitment

5. It is an investment in HR with a promise of better returns in future

6. Reduces dissatisfaction, absenteeism, complaints and turnover of employees.

Importance of Training and Development – With Reasons

Training and development is the corner-stone of sound management. It makes employees more productive and effective. It is actively and intimately related to all the personnel or managerial activities. It is an integral part of the whole management program with all its many activities functionally inter-related. Training is also important for any organization that wants to take advantage of changes, techniques and improvements.

Training and development is important for the following reasons:

i. It enables employees to develop and rise within the organization, and increase their market value.

ii. It enables management to resolve sources of friction arising from parochialism.

iii. It brings home to the employees the fact that the management is not divisible.

iv. It moulds the employee’s attitudes and helps them to achieve a better co­operation with the company and a greater loyalty to it.

v. It helps to achieve higher standards of quality.

vi. It assists build up a satisfactory organizational structure.

vii. Assists in the delegation of authority and provides stimulus or progress applied to employees.

viii. Heightens the morale of employees as it reduces dissatisfaction, complaints, grievances and absenteeism, reduces the rate of turnover.

ix. Training employees make a better and economical use of materials and equipment.

x. It helps in reduction of wastage and spoilage.

xi. Reduces the need for constant supervision.

Importance of Training and Development

In general, the terms “training” and “development” are used interchangeably. However, some attempts have often been made to identify the points of differentiation between the two. It has been contended that the focus in training is primarily on improving the efficiency of employees on their present jobs with major emphasis on promoting productivity and improving the quality of products.

On the other hand, development programme is intended to promote learning amongst various categories of personnel not only on their present jobs, but also on their future assignments in a long-term perspective. Whereas in “training”, the focus is on the present job requirements, in “development”, the focus is on enhancing the capabilities of employees for the present arid future assignments.

While laying emphasis on the importance of development, some managers went to the extent of suggesting long back that” . . . training is for dogs; people are developed.”

Without going into the intricacies of differences between the two terms, it is desirable to use the term “training and development” (T&D) in combination. “Training and development” (T&D) is a continuous process intended to improve competency of employees at various levels and the overall performance of the organisation. It combines the activities relating the up-gradation of skills, learning and development.

The need for laying greater emphasis on the development aspect has emerged mainly due to the emerging complexities of jobs and difficulties encountered by the supervisors and managers in the discharge of their duties and responsibilities. It was increasingly realised that employees in an organisation can exert their full potentials only when their learning process goes beyond the routine work at the assigned jobs.

Thus, in T&D programmes, emphasis is laid not only on leaning on the jobs, but also on provision of congenial environment, discovering and cultivating required aptitudes, promoting potentialities of employees and facilitating their continuous growth.

During more recent years, the term “T&D” has come to be supplemented by such new terms as “human resource development”, “career development” and “talent development.” Talent development is said to be the “process of changing an organisation, its employees, its stakeholders and groups of people within it, using planned and unplanned learning, to achieve a competitive advantage for the organisation.”

Career development is considered necessary for the retention of employees, no matter, what their level is in the company. These terms are, however, used in particular context and particular objectives sought to be achieved.

Well-planned, carefully designed and properly implemented T&D programme is beneficial for both the organisation and the trainees.

Some of importance of T&D programme are as follows:

(1) It enhances the skills and capabilities of the employees.

(2) It facilitates the adoption of new and improved technology and processes in production.

(3) It enables the employees to learn additional skills and develop capabilities, thus enhancing their versatility for providing them opportunities for advancement.

(4) T&D programme is also conducive to promote flexibility in the organisation and thereby enables it to face unforeseen and challenging situations effectively.

(5) As the enhanced capabilities acquired by employees through T&D programme are usually rewarded by promotion or increased emoluments, they remain satisfied with the organisation and are reluctant to leave it, thus reducing the chances of absenteeism and turnover.

(6) T&D programme promotes the building of workforce with enhanced skills and capabilities, which ensures a potential internal source of manpower.

(7) T&D programmes are also conducive to the promotion of productivity, reduction of labour cost and profitability of the organisation.

(8) T&D programmes lead to proper flow and continuity of operations, and reduce the possibility of avoidable interruptions.

Some other advantages of effective training and development programmes are – (i) establishment of useful human relations; (ii) enhancement of employees’ loyalty and commitment towards the organisation and (iii) reduction of stress and tension in the organisation.

Importance of Training and Development – Towards Organisation and Employees

Training and Development attempts to –

i. Improve the current or future performance of an employee.

ii. Increase employee’s ability to perform through learning.

iii. Change employee’s attitude or increase his/her skills and knowledge.

The training and development programmes improve employees’ performance, which directly helps an organisation to achieve its goals. Thus, training benefits both employees and the organisation.

Let us analyse the importance of training and developments.

1. Importance towards the Organisations:

They are as follows:

1. Systematic learning process – In the absence of proper training employees use hit and trial methods to perform the tasks assigned to them which lead to wastage of resources and effort. With the help of training, employees learn the systematic way of doing specific jobs.

2. Enhances productivity – Systematic processes help employees to perform tasks efficiently and effectively leading to increased productivity and improved performance.

3. Develops future managers – Training improves managerial skills amongst employees enabling them to manage enterprise in case of emergency.

4. Higher Profits – The systematized learning helps employees to perform tasks most effectively and efficiently. This not only improves the employee performance but also increases the quantity and quality of work done in the organisation. The improved performance leads to higher profits and better growth prospects for the organisation.

5. Lesser wastage and reduced risks of accidents – Proper training enables employees to use resources in the most optimal manner and operate machines with proper technical and operating skills. This leads to lesser wastage of resources and reduced risks of accidents.

6. Reduces absenteeism and employee turnover – With effective training employees are able to improve their performance. This gives them job satisfaction and increases their confidence. Satisfaction in work not only reduces absenteeism but also keeps employees’ content leading to reduced turnover.

7. Helps to adapt changes in business environment – Training programmes aim to upgrade employees’ knowledge and skills enabling them to respond positively to the economic and technological changes in the business environment.

2. Importance towards the Employees:

They are as follows:

1. Growth opportunities – Training programmes upgrade employees’ knowledge, develop their skills and prepare them for higher responsibilities. It enables employees to take challenges and thus have better growth opportunities.

2. Higher income – Training improves employees’ skills and help them to manage activities effectively leading to improved performance. This gives them opportunities to earn higher salaries or incentives.

3. Increases efficiency and reduces risks – Training helps employees to learn the most effective ways of handling machines and jobs assigned to them. This increases their efficiency and reduces the risks of accidents.

4. High morale and job satisfaction – Training helps employees to complete the jobs assigned to them in an effective and efficient manner. This increases the job satisfaction and develops high morale among employees.

5. Makes new employees comfortable in new environment – Training is a mode to familiarise newly appointed employees not only with the organisation but also helps them to acquire knowledge and skills required to perform the duties assigned to them. It helps new employees to start their work without any hindrance.

Importance of Training and Development – Productivity, Team Spirit, Organisation Culture, Organisation Climate, Quality, Healthy Work Environment and a Few Others

Training is concerned with increasing the knowledge and skills of the employees for doing specific work whereas development are concerned with the growth of the employees in all aspects. Training enhances job skills, whereas development shapes attitudes of the employees.

Meaning of Training:

According to Edwin B. Flippo, “Training is an act of increasing the knowledge and skills of an employee for doing a particular job”. It is an organised activity for enhancing the technical skills of the employees to enable them to do a particular job effectively and efficiently.

In other words, it provides the workers with facility to gain technical knowledge and to learn new skills to do specific jobs. Training is equally important for the existing as well as new employees. It enables the new employees to get acquainted with their jobs and also increase the job related knowledge and skills.

Meaning of Development:

Development involves growth of an employee in all respects. It is the process by which the employees acquire skills and competence to do their present jobs and increase their capabilities for handling higher jobs in the future. Thus, development has a wider perspective. It involves acquiring not only technical skills but also problem solving and decision-making skills.

That is why; development is more relevant for the managers or executives. It is a continuous process of building competencies of the employees. This term is generally used in relation to managers or executives and is described as management development or executive development.

Importance of Training and Development:

1. Productivity- Training and Development helps in increasing the productivity of the employees that helps the organisation further to achieve its long-term goal.

2. Team spirit- Training and Development helps in inculcating a sense of teamwork, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn.

3. Organisation culture-Training and Development helps to develop and improve the organisational health culture and effectiveness. It helps in creating a learning culture within an organisation.

4. Organisation climate- Training and Development helps building the positive perception and feeling about the organisation. The employees get these feelings from leaders, subordinates and peers.

5. Quality- Training and Development helps in improving the quality of work and work- life.

6. Healthy work environment- Training and Development helps in creating a healthy working environment. It helps to build good employee relationship so that individual goals align with organisational goal.

7. Health and safety- Training and Development helps in improving the health and safety of the organisation thus preventing obsolescence.

8. Morale- Training and Development helps in improving the morale of the workforce.

9. Corporate Image- Training and Development helps in creating a better corporate image.

10. Profitability- Training and Development leads to improved profitability and more positive attitudes towards profit orientation.

11. Organisation development- Training and Development aids in organisational development. It helps in understanding and carrying out organisational policies

12. Skill enhancement- Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.